Aemetis Acquires 24 Acre Site in Riverbank, California for Carbon Capture and Sequestration Injection Well

Rhea-AI Summary

Aemetis, Inc. (NASDAQ: AMTX) has announced the acquisition of 24 acres within the Riverbank Industrial Complex to develop a Carbon Capture and Sequestration (CCS) injection well. This facility is projected to sequester 1 million metric tonnes of CO2 annually from various sources. The company aims to obtain necessary data for the EPA Class VI CO2 injection well permit application.

With more than $72 million in federal funding allocated for upgrades, this project supports Aemetis's mission to enhance its biofuels' sustainability, ultimately contributing to climate mitigation efforts.

Positive

• Secured a site for the planned annual sequestration of 1 million metric tonnes of CO2, enhancing the sustainability of biofuels.
• Acquisition backed by over $72 million in federal funding for facility improvements.
• The project is expected to attract world-class engineering and construction companies for CO2 compression and injection.

Negative

• None.

Part of the 125-acre Riverbank Industrial Complex, the site is planned for the annual permanent sequestration of 1 million metric tonnes of carbon dioxide from industrial and agricultural sources

CUPERTINO, Calif., July 08, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire – Aemetis, Inc. (NASDAQ: AMTX), a renewable natural gas and renewable fuels company focused on below zero carbon intensity products, today announced the purchase of 24 acres, known as “Parcel B” on the Riverbank Industrial Complex site, to develop a Carbon Capture and Sequestration (CCS) injection well.  The company plans to construct a characterization well to obtain required data and final injection well design information that will be used for the EPA Class VI CO2 injection well permit application for the sequestration of approximately one million metric tonnes per year of CO2.

“The Riverbank Parcel B land purchase secures the key site for 1 million annual tonnes of planned CO2 injection to reduce the carbon intensity of Aemetis biofuels and sequester CO2 from other California industrial and agricultural sources,” said Eric McAfee, Chairman and CEO of Aemetis. “We have completed engineering and filed permits to drill a characterization well on the site as the next step in our CCS project, helping to close the gap on essential climate mitigation actions that can be accomplished  today.”

The Aemetis carbon sequestration project has attracted world-class companies in the engineering, design, and construction of facilities for CO2 compression and injection.

After several years of negotiations and approvals, in December 2021 Aemetis signed an agreement with the City of Riverbank to purchase the 125-acre former military base in Riverbank, California known as the Riverbank Industrial Complex. The agreement leased the entire 125 acre facility to Aemetis until US Army and other approvals are obtained for the transfer of site ownership to Aemetis.  The purchase of the 24-acre Parcel B is the first land acquisition completed under the agreement. 

The Riverbank facility features 710,000 square feet of existing industrial and commercial buildings with more than 30 existing commercial tenants; a four-mile railroad loop with a 120 railcar storage capacity; and a 20 megawatt onsite electric substation with 100% low carbon hydroelectric power. The Riverbank facility has an approved Environmental Impact Report (EIR) for development, and has received more than $72 million of federal funding for facility upgrades and remediation since being decommissioned as a U.S. Army base primarily focused on ammunition production.

About Aemetis

Aemetis has a mission to transform renewable energy with below zero carbon intensity transportation fuels. Aemetis has launched the Carbon Zero production process to decarbonize the transportation sector using today’s infrastructure. 

Aemetis Carbon Zero products include zero carbon fuels that can “drop in” to be used in airplane, truck, and ship fleets. Aemetis low-carbon fuels have substantially reduced carbon intensity compared to standard petroleum fossil-based fuels across their lifecycle. 

Headquartered in Cupertino, California, Aemetis is a renewable natural gas, renewable fuel and biochemicals company focused on the acquisition, development and commercialization of innovative technologies that replace petroleum-based products and reduce greenhouse gas emissions.  Founded in 2006, Aemetis has completed Phase 1 and is expanding a California biogas digester network and pipeline system to convert dairy waste gas into Renewable Natural Gas. Aemetis owns and operates a 65 million gallon per year ethanol production facility in California’s Central Valley near Modesto that supplies about 80 dairies with animal feed. Aemetis also owns and operates a 50 million gallon per year production facility on the East Coast of India producing high quality distilled biodiesel and refined glycerin for customers in India and Europe.  Aemetis is developing the Carbon Zero sustainable aviation fuel (SAF) and renewable diesel fuel biorefineries in California to utilize distillers corn oil and other renewable oils to produce low carbon intensity renewable jet and diesel fuel using cellulosic hydrogen from waste orchard and forest wood, while pre-extracting cellulosic sugars from the waste wood to be processed into high value cellulosic ethanol at the Keyes plant. Aemetis holds a portfolio of patents and exclusive technology licenses to produce renewable fuels and biochemicals.  For additional information about Aemetis, please visit www.aemetis.com. 

Safe Harbor Statement 

This news release contains forward-looking statements, including statements regarding assumptions, projections, expectations, targets, intentions or beliefs about future events or other statements that are not historical facts. Forward-looking statements in this news release include, without limitation, statements relating to the development and construction of carbon capture and sequestration projects, our compliance with governmental programs, and our ability to access markets and funding to execute our business plan.  Words or phrases such as “anticipates,” “may,” “will,” “should,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “showing signs,” “targets,” “view,” “will likely result,” “will continue” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on current assumptions and predictions and are subject to numerous risks and uncertainties.  Actual results or events could differ materially from those set forth or implied by such forward-looking statements and related assumptions due to certain factors, including, without limitation, competition in the ethanol, biodiesel and other industries in which we operate, commodity market risks including those that may result from current weather conditions, financial market risks, customer adoption, counter-party risks, risks associated with changes to federal policy or regulation, and other risks detailed in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2021 and in our subsequent filings with the SEC. We are not obligated, and do not intend, to update any of these forward-looking statements at any time unless an update is required by applicable securities laws.

External Investor Relations
Contact:
Kirin Smith
PCG Advisory Group
(646) 863-6519
ksmith@pcgadvisory.com

Company Investor Relations/
Media Contact:
Todd Waltz
(408) 213-0940
investors@aemetis.com

FAQ

What is Aemetis's recent acquisition related to?

Aemetis has acquired 24 acres at the Riverbank Industrial Complex to develop a Carbon Capture and Sequestration (CCS) injection well.

How much CO2 will Aemetis's CCS project sequester annually?

The project plans to sequester approximately 1 million metric tonnes of CO2 each year.

What is the significance of the Riverbank facility for Aemetis?

The Riverbank facility will help reduce the carbon intensity of Aemetis biofuels and contribute to climate mitigation efforts.

What financial support has Aemetis received for this project?

Aemetis has received over $72 million in federal funding for facility upgrades and remediation related to the Riverbank project.

What is the purpose of the characterization well being drilled at the site?

The characterization well is intended to gather data needed for the EPA Class VI CO2 injection well permit application.